JayBoRover, my own experience is from the hobby side of things, and I don't qualify as even a machinist's toenail, but here's my situation/thoughts..
25 years ago I was given an ex-TAFE 9" Hercus, spindle bore is only about 25mm. Had screwcutting capability and was a bit tired - but the price was right.
Its done a lot of jobs over the years that I simply couldn't have done without it. Something that would do heavier cuts, occasionally swing larger stock etc would have been nice, but for the amount that I use it its been more useful than not.
A couple of weeks ago I had to clean up a brand new swivel bush for the county (internal diam was too small when manufactured), yesterday I took a few mm off an alternator pulley. 
Without a lathe it would have been a case of returning parts, leaning on a mate for favours or paying someone to do those jobs - along with the hours/days of stuffing around that goes with it.
The largest piece I've ever swung would be around 150mm, and while at times it would be nice to poke a piece of 50mm bar through the spindle I'm not generally doing long lengths so its not a show stopper - just cut your stock to a more suitable size and chuck it.
IMO, almost any lathe is better than no lathe, so buy as big as you can afford and enjoy it. 
Lathes aren't like children or wives. Its not a lifetime decision and if you find you're wanting something better you can easily sell and upgrade. Single phase lathes always seem to hold their price so you're unlikely to suffer much financially if you do.
Steve
				
			 
			
		 
			
				
			
			
				1985 County - Isuzu 4bd1 with HX30W turbo, LT95, 255/85-16 KM2's
1988 120 with rust and potential
1999 300tdi 130 single cab - "stock as bro"
2003 D2a Td5 - the boss's daily drive
			
			
		 
	
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